Welspun Corp Limited announced the completion of an internal restructuring transaction involving its wholly owned subsidiaries. Welspun Mauritius Holdings Limited (WMHL) transferred 69,30,000 equity shares, representing a 22.0% stake, in East Pipes Integrated Company for Industry (“EPIC”) to Welspun Pipes Inc (“WPI”). The transaction was executed for a total cash consideration aggregating approximately SAR 979.90 million. The transfer, conducted on an arm’s length basis, is purely an intragroup reorganization and is not anticipated to impact the ultimate ownership or the financial performance of Welspun Corp.
Internal Restructuring of Subsidiary Holdings
Welspun Corp Limited has finalized a significant intragroup transaction involving the transfer of equity shares between two of its wholly owned overseas subsidiaries. The transfer involved 69,30,000 equity shares, equating to a 22.0% stake, in East Pipes Integrated Company for Industry (“EPIC”).
The seller was Welspun Mauritius Holdings Limited (WMHL), and the acquiring entity was Welspun Pipes Inc. (WPI), USA. The transaction has been successfully executed and completed on the Tadawul Stock Exchange, where EPIC’s shares are listed.
Transaction Financials and Valuation
The transfer was conducted for an aggregate cash consideration of approximately SAR ~ 979.90 million. This valued the shares acquired at SAR 141.40 per share. The transaction was confirmed to have been undertaken on an arm’s length basis.
Impact and Post-Transaction Status
EPIC, which was previously an associate company of WMHL, will now become an associate company of WPI following the transfer. The primary objective of the transfer was internal reorganization. The Company explicitly stated that this internal shuffling of ownership among wholly owned subsidiaries does not result in any change in the ultimate ownership and is not expected to have any material impact on the operations, financial position, or profitability of Welspun Corp Limited.
Details of Target Entity (EPIC)
EPIC is engaged in the manufacturing of pipes, tubes, and hollow shapes from iron and steel in the Kingdom of Saudi Arabia. The company was incorporated on 4th July 2010.
Key turnover figures for EPIC for the last three financial years are detailed below:
- 2025: SAR 1,832.85 million
- 2024: SAR 1,543.17 million
- 2023: SAR 1,438.65 million
Source: BSE
